1 min read.Updated: 26 Oct 2017, 11:44 PM ISTSneh Susmit
Khadim India has set a price range of Rs745-750 per share for the IPO, which values it at Rs1,288-1,297 crore
Mumbai: Footwear retailer Khadim India Ltd on Thursday said its Rs543 crore initial public offering (IPO) will open on 2 November.
The company has set a price range of Rs745-750 per share for the IPO, which values it at Rs1,288-1,297 crore. The offer will close on 6 November.
The share sale includes new shares worth Rs50 crore. The proceeds from the fresh issue will be used for prepayment or scheduled repayment of all or a portion of term loans and working capital facilities availed by the company and to meet general corporate expenses.
Promoter Siddhartha Roy Burman plans to sell 722,000 shares, which at the upper end of the price band will fetch Rs54 crore, while Fairwinds Private Equity (formerly Reliance Equity Advisors) will sell 5.85 million shares worth Rs438 crore.
Fairwinds, which currently holds 33% stake in Khadims, invested Rs90 crore in 2013. As of 31 March, Khadims had 829 outlets across 23 states and one union territory.
Khadim competes with brands such as Bata India Ltd, Relaxo Footwears Ltd, Liberty Shoes Ltd, Mochi Shoes Ltd and Sree Leathers Pvt. Ltd.
In 2016-17, the company reported a revenue of Rs621.2 crore, up 16% from the previous fiscal. The company reported a profit of Rs30.8 crore in 2016-17, up 22% from a year earlier.
According to Ishani Ray, chief financial officer of Khadims, the company intends to expand its geographical footprint in western India and certain markets in north India, while also looking to further penetrate in South India. Ray added that the company also plans to premiumize its product offering to increase average selling price and gross margins.
IDFC Bank Ltd and Axis Capital Ltd are managing the Khadim share sale.
Till September this year, the Indian primary market has witnessed 24 IPOs with companies raising Rs30,853 crore, according to data from primary market tracker Prime Database. In 2016, 26 companies raised Rs26,493.8 crore through the IPO route.